Stop Loss Alert for ERX

ERX closed below my new short-term uptrend 3 of the last 4 trading days (it first breached the trend last Wednesday). So I unwound my position for a total loss of 0.27 including commissions and fees.

The possibility still exists that ERX will reverse course, as the closing price was BARELY below the trendline (less than 0.5%!). But better safe than sorry at this point.

That said, I have a feeling that some back testing is in order. I’d like to know if I should institute a 3 strike policy before pulling the trigger on trades, or if I was just lucky this time and the bottom didn’t fall out before I got out.